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Revising E-commerce Categorization of Drinks and Beverages

The government has issued regulations that require the elimination of drinks and beverages from the list of 'healthy drinks.'

Business

Revising E-commerce Categorization of Drinks and Beverages

Revising E-commerce Categorization of Drinks and Beverages

The Narendra Modi government has issued directives to all e-commerce websites mandating the removal of Drinks and Beverages from the ‘healthy drinks’ category. This move is a significant setback for leading brands like Bournvita and others.

Regulatory Context of Drinks and Beverages Issue

According to a report by Moneycontrol, the Ministry of Commerce and Industry’s order follows an assertion by the National Commission for Protection of Child Rights (NCPCR). 

The NCPCR stated that, as per submissions by the Food Safety and Standards Authority of India (FSSAI) and Mondelez India, there is no specific definition of a health drink under the Food Safety and Standards (FSS) Act of 2006.

Ministry’s Notification

The ministry’s notification referenced an NCPCR inquiry under Section 14 of the CPCR Act, 2005. This inquiry concluded that the FSS Act of 2006 and its associated rules and regulations do not define a healthy drink.

Directives to E-commerce Platforms on Drinks and Beverages:

Due to these findings, the ministry has advised all e-commerce platforms to eliminate drinks and beverages, including Bournvita, from the ‘health drinks’ category on their respective platforms.

Alignment with FSSAI Guidelines:

This directive from the ministry aligns with recent guidance from the FSSAI, which urged e-commerce platforms not to classify dairy, cereal, or malt-based beverages as ‘health drinks’ or ‘energy drinks.’ 

The FSSAI emphasized that the term ‘health drink’ lacks legal definition, while ‘energy drinks’ merely refer to flavored water-based beverages.

Consumer Protection Concerns:

The FSSAI underscored the importance of accurate advertisement terminology to prevent consumer deception. 

Incorrect labeling can mislead consumers, hence the directive for e-commerce platforms to rectify or remove such misrepresentations.

NCPCR Advocacy:

Priyank Kanoongo, Chief of NCPCR, reinforced this stance by urging the ministry, FSSAI, and relevant state and union territories’ consumer affairs departments to ensure that drink beverages, including Bournvita, are not marketed under the ‘health drink’ category.

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